Oil prices fell about 2% on Thursday as the United States eased sanctions on Venezuela to allow more oil to flow globally, but fears that Israel’s military campaign in Gaza may escalate to a regional conflict kept a lid on losses.
Brent futures for December
were down $1.80, or 1.97%, to $89.70 a barrel. U.S. West Texas Intermediate (WTI)
futures for November, which expire on Friday, stood at $86.77 per barrel, down $1.55, or 1.8%.
The more active December WTI contract fell 1.6%, or $1.38, to $85.89 a barrel.
The United States issued a six-month license authorizing transactions in Venezuela’s energy sector, an OPEC member, after a deal was reached between Venezuela’s government and the political opposition there to ensure fair 2024 elections.
The deal is not expected to quickly expand Venezuela’s oil output but could boost profits by returning some foreign companies to its oilfields and providing its crude to a wider set of cash-paying customers, experts said.
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